Note 1: Bids may be made on either a competitive or a non-competitive
basis. Details of the bidding procedures are set out in the prospectus
and in the Information Memorandum. Index-linked Gilt-edged Market Makers
may bid by means of the Bloomberg Bond Auction System to the DMO not
later than 10.30 am on Thursday, 9 June 2016.

Note 2: Holders may elect to have United Kingdom income tax deducted
from interest payments, should they so wish, on application to the
Registrar, Computershare Investor Services PLC.

Note 3: Actual amount of interest per £100 nominal is £0.0625 x Index
Ratio for 22 November 2016 and expressed as a percentage in pounds
sterling to six places of decimals and rounded to the nearest figure.

Note 4: The Reference Index for the first calendar day of any calendar
month shall be the Retail Price Index figure for the calendar month
falling three calendar months earlier. The Reference Index for any other
day in the month shall be calculated by linear interpolation between the
Reference Index applicable to the first calendar day of the month in
which the day falls and the Reference Index applicable to the first
calendar day of the month immediately following. Interpolated values for
the Reference Index for any date should be rounded to the nearest 5th
decimal place.

Note 5: Subject to the provisions of the Information Memorandum, this
auction will be eligible for the Post Auction Option Facility of an
additional amount of the Gilt equivalent to 15% of the nominal amount of
the Gilt allocated at the auction. Details of the Post Auction Option
Facility procedures are set out in the Information Memorandum.

Application forms from Approved Group members must be sent to
Computershare Investor Services PLC, who is acting on behalf of the DMO,
at the following address: British Government Stocks (Gilts),
Computershare Investor Services PLC, The Pavilions, Bridgwater Road,
Bristol, BS99 6ZW to arrive not later than 10.00
am on Thursday, 9 June 2016. They may also be lodged by hand at
the DMO, Eastcheap Court, 11 Philpot Lane, London, EC3M 8UD not later
than 10.00 am on Thursday, 9 June 2016. The
amount payable on application in the case of a non-competitive bid made
by a member of the Approved Group is £129.50 per £100 nominal of the
Gilt.